Yuhan Corporation took a breather on the 6th, showing a decline of nearly 1% during the trading session.

As of the morning of that day, Yuhan Corporation is trading at 69,800 won, down 600 won (0.85%) from the previous trading day. Selling pressure has dominated since early trading, keeping the stock on a downward trend.

Securities Firms Forecast Solid Q2 Earnings

Securities firms project that second-quarter earnings will meet market expectations, while assessing that the expansion of global new drug-related royalties will be a key variable for the stock going forward.

NH Investment & Securities forecast that Yuhan's consolidated Q2 revenue will reach 634.4 billion won, up 10% year-on-year, with an operating profit of 66.5 billion won, recording an operating profit margin (OPM) of 10%, largely in line with the market consensus.

One-time milestone revenue related to the lung cancer treatment Lazcluze, generated in the European region, is expected to be reflected in the earnings.

Expanding Global Royalty Revenue Remains a Challenge

However, the pace of growth in global royalty revenue has not yet met expectations, which was pointed out as a disappointment.

NH Investment & Securities analyzed that for the stock to maintain its upward trend going forward, the performance of the global new drug business and royalty expansion need to be confirmed in the fourth quarter of this year.

The market believes that while earnings stability may support the stock in the short term, the expansion of global new drug sales and the increase in technology licensing revenue will have a significant impact on the company's medium- to long-term corporate value.

[This article was written with the assistance of AI. This article is not intended to solicit investment, and the final decision and responsibility for investing lie with the investor.]